Gold prices in Dubai saw an increase on the first trading day of the week, following a slump during the last few trading sessions.
In the UAE, the 24K variant of gold rose by half a dirham to Dh291.25 per gram at 9 am, compared to last week’s close of Dh290.75 per gram. Last Friday, gold prices in Dubai dropped nearly Dh8 per gram.
The prices of other gold variants also opened higher. The 22K gold was priced at Dh269.75 per gram, 21K at Dh261.0 per gram, and 18K at Dh223.75 per gram.
Globally, spot gold experienced a slight decline of 0.19 percent, trading at $2,406.8 per ounce at 9.10 am. Chris Weston, head of research at Pepperstone, commented that the recent announcement of US President Joe Biden stepping down as the Democratic Party nominee could pose a minor challenge for gold. However, the weaker dollar is currently providing support to markets across Asia.
“Kamala Harris hasn’t secured the full nomination yet, and with Obama not showing a preference, it may still come down to an open contest. Nevertheless, prediction markets favor her significantly. We’re already seeing over $50 million pledged by Democrat donors, which seems to have revitalized the party’s prospects,” said Weston.
Weston noted that despite these developments, there are enough uncertainties to prevent a significant drop in gold prices. Economic trends remain crucial factors that will influence interest rate cut expectations and, consequently, the price of gold.
“When examining the medium-term factors that are bullish for gold, Harris potentially boosting the Democrats’ prospects into November might reduce the need to own gold as a hedge against Trump/Vance’s hawkish foreign policy and massive deficit spending over the next decade,” added Weston.
Gold prices in Dubai have risen slightly as the week begins, recovering from a significant drop last week. The global gold market is experiencing minor fluctuations, influenced by political developments in the US and economic trends. Despite uncertainties, the gold market remains supported by various factors, providing a cautious optimism for investors.
